Epic Games Pays Apple $8.1M After Fortnite Lawsuit, But Launches Appeal

Epic Games Pays Apple $8.1M After Fortnite Lawsuit, But Launches Appeal
B&T Magazine
Edited by B&T Magazine
SHARE
THIS



Epic Games has paid Apple US$6 million (approximately $8.1 million) as the result of a lawsuit over the game Fortnite.

The lawsuit originally began because Epic Games objected to the 30 per cent cut of revenue Apple took when users made in-game purchases on apps. As a result, Epic changed their popular game Fortnite to bypass Apple’s App store payment. Apple then removed Fortnite from the app store.

The removal of Fortnite prompted to Epic to launch a lawsuit, and for Apple to launch a countersuit accordingly.

It has been a long, complex case, with arguments initially made in May. Judge Yvonne Gonzalez Rogers’ ruling was made earlier this month.

Ultimately, Judge Gonzalez Rogers’ found in Apple’s favour on nine out of ten counts, however, crucially ruled that Apple’s policy did not comply with California’s Unfair Competition Law.

As a result, Apple will now have to let app developers add “buttons, external links, or other calls to action that direct customers to purchasing mechanisms,” essentially allowing an alternative to in-app purchases.

However, Epic Games was ordered to pay Apple 30 per cent of the US$12 million it made on in-app purchases between August 2020 and October 2020, when Epic was bypassing Apple’s cut of revenue.

It was also ordered to pay back 30 per cent of revenue gained between November 1st 2020, to the date of the judgement itself.

Apple welcomed the judgement in a statement reading: “today the Court has affirmed what we’ve known all along: the App Store is not in violation of antitrust law. As the Court recognised ‘success is not illegal’.”

“Apple faces rigorous competition in every segment in which we do business, and we believe customers and developers choose us because our products and services are the best in the world.”

Epic Games’ CEO Tim Sweeney confirmed via Twitter than Epic had paid Apple the sum. Epic has already launched an appeal against the court’s decision.

In a tweet from September 11, after the Judge ruled largely in favour of Apple, Sweeney wrote: “just as determined as ever to fight on until there is genuine developer and consumer freedom in software, and fair competition in each mobile platform software component.”

He also confirmed that Fortnite would not, at present, be returning to the App Store.

Please login with linkedin to comment

apple. epic games vs apple competition epic games fortnite

Latest News

“Leading By Example Is One Of The Most Powerful Things Brands Can Do” Gumtree’s Erin Holt On How Sustainability Drives Customers
  • Marketing
  • Media
  • Opinion

“Leading By Example Is One Of The Most Powerful Things Brands Can Do” Gumtree’s Erin Holt On How Sustainability Drives Customers

Marketplace Gumtree is always conducting research to better understand Australian consumers. The result is that the marketing platform is able to find new and interesting ways to connect with Australians.  Gumtree is a platform where you can buy, swap, and sell used goods. You can get anything from an upcycled bike to a brand new […]

Seismic Announces New Zealand Partnerships To Empower Businesses And Workers
  • Technology

Seismic Announces New Zealand Partnerships To Empower Businesses And Workers

Seismic has announced an expanded New Zealand (NZ) presence to support the transformation of sales and marketing teams, and enable the nation’s employers to focus on upskilling their workforces to overcome a digital skills shortage. The company has also signed NZ-based specialist consultancies, Fresh Perspective Sales (FPS) and Jumping Fox Interactive, as its first two […]

PHOTOGRAPH BY NIGEL WRIGHT. 
WRIGHTPHOTO1@MAC.COM

THE MASKED SINGER S3. EP5

THIS PICTURE SHOWS: EPISODE 5 REVEAL…MAHALIA BARNES















.
  • Media

Tuesday TV Wrap: Masked Singer Reveal Falls From Monday As Pavlova Is Uncovered

The Masked Singer’s big reveal saw a slight drop off in audience from its Monday night episode, netting an average of 654,000 viewers. That’s a decrease of 49,000 from the previous night where, as you are sure to remember, the dancing pinata was revealed to be Lote Tuqiri. Last night was the reveal of a […]

by B&T Magazine

B&T Magazine
Ray White Goes In-House For New “Proudly” Campaign Just In Time For Spring Selling Season
  • Campaigns

Ray White Goes In-House For New “Proudly” Campaign Just In Time For Spring Selling Season

Australasia’s largest real estate agency has released its biggest brand campaign ever that was all done in-house. The spring campaign, “Proudly Ray White”, was created to help service the more than 730 Australian offices under the leading group’s umbrella. Spearheaded by Ray White marketing manager Todd Alexander and brand manager David Williamson, the campaign was […]

The Lab Expands Executive Team With Three Promotions
  • Marketing

The Lab Expands Executive Team With Three Promotions

Leading cultural insights and strategy company The Lab today announced the promotion of three senior staff members to executive positions in its Melbourne and Sydney offices. The promotions follow strong growth for The Lab, with the addition of new clients and the launch of its innovative new artificial intelligence and machine learning division, Lab AI, […]

Booktopia’s Alex Huntley On Partnering With SaaS Platform Freshworks And Tackling The Pandemic
  • Marketing

Booktopia’s Alex Huntley On Partnering With SaaS Platform Freshworks And Tackling The Pandemic

Alex Huntley, Booktopia’s head of customer experience, recently appeared at software company Freshworks’ recent digital CX summit RE:SOLVE. During the summit, Huntley shared his thoughts on future-proofing customer service architecture.Huntley sat down with B&T to discuss Booktopia’s partnership with Freshworks and how it has helped their platform develop. B&T: Why did Booktopia first decide to partner […]

Nestlé Oceania Adds The Edison Agency To Strategic Design Roster
  • Marketing

Nestlé Oceania Adds The Edison Agency To Strategic Design Roster

The Edison Agency has made four new appointments in its Sydney office to service the continued growth across key account The Arnott’s Group and the recent appointment to Nestlé Oceania’s strategic packaging design roster. Over the past 12 months, the culmination of strategic and creative work across the Uncle Toby’s brand and continued growth of […]

SCA Launches Smart Speaker Experience Tom & Olly’s Guide To Lockdown
  • Media

SCA Launches Smart Speaker Experience Tom & Olly’s Guide To Lockdown

SCA has announced a new smart speaker experience for the Hit Network, with Tom and Olly’s Guide to Lockdown. A voice-activated way to get inspiration and information on fun activities that can be done at home, the guide is curated to appeal to a wide audience. Smart speaker users will find a range of ideas […]